Purchasing a CPO

[hillyes]

Hi all,

I'm looking for advice on purchasing a new Stinger. I've been looking at a CPO Kia Stinger GT2 AWD from my local dealer with roughly 7000 miles on the odo. It was a customer car traded in for a BMW. The best deal that the dealer is willing to offer me is 42450 plus 600 doc fee. I've been looking at the car, both new and used, and it seems to be a fair price. I am going to get financing through my bank at 2.5% for 48 mo. I know there is crazy lease cash incentive on new cars, but I put 30k+ mi/ year on my car, and therefore would have to buy out the lease. When I added up the total lease cost plus buyout, the car was practically the same price as MSRP even after incentives. Am I missing something? Is this a fair price? Any advice would be appreciated.

 

[Ruturaj]

Adding all values is complicated and tricky. Your lease payment will include interest + GAP insurance (mostly) + taxes. At the end of the lease, you should add taxes on buyout amount and interest for remaining amount and then loan years. Then comapre it with buying rice with interest and taxes.

The best way I see is to lease and then do buyout in the first month. (if you get charged taxes on a yearly basis then wait 1 year on lease).

 

[hillyes]

I didn't factor in the GAP insurance and the sales tax on the leased portion. Thanks!! After crunching the numbers again. Total lease price including sales tax would be ~54550. CPO'd car (~4300) plus sales tax would be ~48,681. So buying new is still much more expensive. Does anyone have any thoughts on whether or not 4300 including doc fee is fair for the GT2 AWD in red?

Edit. I forgot to add the cost of the interest on the loan. I updated above to reflect that.

 

[Ruturaj]

I personally don't find this a good deal. Why not start lease and in the first month get a car loan and pay off KMF?

 

[Indy499]

You can definitely lease gt2 and then immediately buy out for around $43k, plus taxes. No point in getting a used one at that price.

 

[Kamauxx]

Total lease price including sales tax would be ~54550.

You forgot to subtract whatever the current lease incentives are, right? GT2 is probably around $7k off MSRP.

 

[Waynerm002]

GT2 AWD is going to be $8900 in lease incentive, if you negotiate @ 10-15% off as I’ve seen some cars listed for sale this way, then apply the incentive, you will come out better on the new car. The interest on a new car should be less than on a used.

 

[hillyes]

Thanks for all of the replies! Yes the above listed price was including all incentives at the time. I checked with the finance department at my dealer. Apparently the lease buyout option is not available in Kansas. Or at least that's the line that my dealer is giving me. I agree with you all that the lease buyout would be a much better option if available. I think I read elsewhere that it's an option in Oklahoma, Texas, and some other states. Maybe it's time for a road trip?

 

[Paul32]

Thanks for all of the replies! Yes the above listed price was including all incentives at the time. I checked with the finance department at my dealer. Apparently the lease buyout option is not available in Kansas. Or at least that's the line that my dealer is giving me. I agree with you all that the lease buyout would be a much better option if available. I think I read elsewhere that it's an option in Oklahoma, Texas, and some other states. Maybe it's time for a road trip?

Before you make the road trips, better check to see if it's based on the registered state not the purchase state. I think that is how it would work in Florida.

 

[Indy499]

You can buy the lease out in any state. Any dealer telling you otherwise is uninformed or being disingenuous.

Oklahoma, Texas, and Arkansas allow balloon financing, which means you can get the lease money without paying the acquisition fee and title change, then you buy out the balloon loan or refinance with a standard loan. It's a better deal because you pay less lease fees.

 

[Paul32]

You can buy the lease out in any state. Any dealer telling you otherwise is uninformed or being disingenuous.

Oklahoma, Texas, and Arkansas allow balloon financing, which means you can get the lease money without paying the acquisition fee and title change, then you buy out the balloon loan or refinance with a standard loan. It's a better deal because you pay less lease fees.

I agree you can buy the lease out in any state but in some cases you can buy the lease without returning to the dealer to get a buyout number. Your dealing with the dealer and not the finance company. It's so much easier just to be able to get a buyout figure from your payment record at Kia/Hyundai finance.

 

[Indy499]

I agree you can buy the lease out in any state but in some cases you can buy the lease without returning to the dealer to get a buyout number. Your dealing with the dealer and not the finance company. It's so much easier just to be able to get a buyout figure from your payment record at Kia/Hyundai finance.

This is true. As far as I know, Florida is the only state where you have to go through your dealer though.

 

[Paul32]

This is true. As far as I know, Florida is the only state where you have to go through your dealer though.

Well I guess I can put up with that better than the states that require sales tax on the total cost of the car, not just the lease payments. I wonder what happens in those states if you decide to purchase at lease end? No sales tax?

 

[hillyes]

Thanks all for your help. Picked up a NEW GT2 AWD in Red from a dealer that was willing to confirm the lease buyout with me!!

 

[Ruturaj]

Thanks all for your help. Picked up a NEW GT2 AWD in Red from a dealer that was willing to confirm the lease buyout with me!!

Congratulations. How much did you end up paying?

 

[hillyes]

$43,700+tax incl all other fees

 

[Waynerm002]

Congrats! Now post some photos of your new baby!